Biocon subsidiary Biocon Biologics nears $4 billion valuation with Goldman Sachs investment

By: |
November 7, 2020 5:53 PM

The transaction, which is subject to customary approvals, has got the board’s approval while “as per the terms of the proposed agreement, Goldman Sachs will be issued Optionally Convertible Debentures at a post-money equity valuation of $3.94 Billion."

The investment by Goldman Sachs will help Biocon Biologics invest in research and development, manufacturing, and set-up a global commercial footprint.

Biopharmaceuticals firm Biocon on Saturday said its biosimilars subsidiary Biocon Biologics has raised $150 million from Goldman Sachs at a post-money equity valuation of $3.94 billion. The transaction, which is subject to customary approvals, has got the board’s approval while “as per the terms of the proposed agreement, Goldman Sachs will be issued Optionally Convertible Debentures at a post-money equity valuation of $3.94 Billion,” Biocon said in a statement. According to the World Health Organization, biosimilars is a biotechnological product comparable to an already-approved reference product in quality, non‐clinical, and clinical evaluation.

“We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflection point of Biocon Biologics’ journey in its quest for global leadership in providing affordable access through Biosimilar drugs,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon. “The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for healthcare systems and improved patient access to treatments,” said Som Krishna, Managing Director, Merchant Banking Division, Goldman Sachs.

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Biocon Biologics develops biosimilars that expand patient access to “a cutting-edge class of therapies” globally, the company said. It claimed to have among the largest biosimilars portfolios in the world, spanning “recombinant human Insulin (rh-Insulin), insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas.” Recently, the company’s Insulin Glargine was commercialised in the U.S., making it the only company from India to enable affordable access to three products — a biosimilar monoclonal antibody (Trastuzumab), a therapeutic protein (Pegfilgrastim), and an Insulin analog (Glargine) for patients in the U.S, through its partner Mylan, the statement added.

The investment by Goldman Sachs will help Biocon Biologics invest in research and development, manufacturing, and set-up a global commercial footprint. Dr Christiane Hamacher who heads Biocon Biologics as its CEO said that the company is confident of serving 5 million patients through its biosimilars portfolio and attaining a revenue target of $1 billion by FY22.

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